Case Studies
The operator of five urgent care clinics located in Southern California had defaulted on two bank loans, after failing to attract sufficient walk-in business, and was facing a pending $2 million judgment in a wage-and-hour class action lawsuit brought by former employees. The bank and its borrower had suffered through a lengthy dispute over resolving the defaults, and the bank was at risk of losing control of the business’s assets to the class action lawsuit’s judgment creditor.
As receiver of the insolvent urgent care clinics, our experts quickly determined the clinics’ bank was at risk of repayment due to poor cash flow and a pending $2 million wage-and-hour class action lawsuit. We managed the clinics while successfully negotiating a going-concern sale of 3 clinics to their hospital-landlord.
Unexpectedly, the clinic owner filed for bankruptcy 30 minutes before the hearing to approve the sale.
Our experts were appointed monitor by the bankruptcy court and continued to pursue an exit strategy for the bank. After 15 months and $1 million in fees, the bankruptcy judge granted relief from stay and proposed the original deal we had negotiated – the going-concern sale of 3 of the clinics to their hospital-landlord.
Obstacles Encountered & Our Solutions
Jake DiIorio
Managing Director,
Strategic Advisory
+1 213 235 0609
[email protected]
> Fiduciary Services – Receivers, Assignees, Trustees
We deliver unbiased, expert solutions in court-mandated and out-of-court situations that demand a third-party fiduciary, including insolvency, fraud, litigation, and shareholder disputes. Our full-service team of financial and operational experts serve as Federal and State Receiver, Bankruptcy Trustee & Examiner, and Assignee for the Benefit of Creditors (ABC), designing and implementing recovery strategies to maximize the value for all stakeholders.
> Strategic Advisory
From strategy to execution, we help clients overcome complex enterprise challenges and realize long-term, sustainable business value. The solutions we deliver are derived from a combination of technical, scientific, financial, and strategic expertise and unrivaled understanding of both tangible and intangible assets.